Why is there so much angst between Realtor associations, MLSs and brokerage firms?

By Steve Murray

“The whole is festering with unhappy souls. The French hate the Germans, the Germans hate the Poles. Italians hate Yugoslavs and South Africans hate the Dutch. And I don’t like anybody very much.” -Kingston Trio “They’re Rioting in Africa” lyrics

Sounds like the current state of our industry, doesn’t it? The level of angst between local, state and national Realtor associations, MLSs, brokerage firms and national realty chains has risen to new heights. Everyone is unhappy with everyone else in some fashion. Of course, there are exceptions (though hard to find).

It occurs to us that this is what happens when the pie shrinks (revenues generated by the industry and the lack of growth in membership). The fight becomes one where everyone invades someone else’s turf (mission creep). It happens in other industries as well.

What is needed is a group of wise people from the various constituencies to gather and come up with a way to co-exist. A new road map is needed. A map that lays out how the market place can be made clearer and more efficient. That would be a worthy goal. It behooves these leaders to find some solutions before external forces develop their own path (pocket listings anyone?).

We may be wrong, but it seems like we are creating fixes on the run when what is needed is a full examination of how we are organized, whether that still works as intended and are there new structures and rules that are needed that reflect today’s reality.

Just a thought.

I agree with Steve that left unaddressed these problems will merely create an environment ripe for invasion by yet other “external forces” that can send the industry in directions no one wants to see it go.

I was reaching for the phone to call Steve and offer my assistance in assembling the right people in the right room at the right time to try to solve these issues. But then I stopped.

My pitch to Steve was going to be, “You bring the brokers. I’ll bring the MLSs. We both know a couple of influential association executives who could bring the Realtor organizations at all levels. Let’s get everyone in the same room at a large round table (think either King Arthur or Paris Peace Talks – no “sides” so everyone is equal) and hash this thing out. Sounds easy. But the doubts crept in as I put down the phone.

What would we talk about? Well, for starters, there’s the list of grievances prepared by The Realty Alliance and aimed at the MLSs and their Realtor Association owners. Many are superficial or apply to only a few isolated situations and could easily be fixed by taking a couple of people out to the wood shed. Others are but the tip of the iceberg and the most recent artifact of a much deeper malaise.

There’s an underlying current of doubt, mistrust, and apprehension that courses through these discussions. It sits like a mastodon in the room, ancient is his repose and invisible to any and all who choose to look around or through the hulking question that challenges every professional in the business: “How do we make this industry better?”

How do we elevate the practice of real estate to a level of professionalism that will foster trust from our clientele and confidence from our fellow practitioners?

How do we reform our trade associations into support organizations that work to the benefit of ALL parties in the transaction – buyer, seller, agent, broker – and not just two or three of the participants?

How do we construct a matrix of interrelationships where all of the pieces not only connect but support all the others and through those connections make the whole of the structure stronger?

How do we build a platform from which to lobby for laws, policies and regulations that promote and sustain the concept of home ownership as a cornerstone of economic prosperity where one’s home is one’s castle and in most cases the basis of one’s family wealth? Could such a platform be supported by both red and blue ends of the spectrum, left and right wings of the parties, and all shades and wings in between?

How do we stop the bickering between the parties which seems to be consuming far more energy and effort than could possibly be justified by the results? There seem to be no results – just continuing misunderstanding, finger-pointing, and ill feelings.

Could any of this be done at a level (national, state, local) and with enough support from all quarters to truly make a difference in how real estate brokerage framework is structured? Or are we too far gone, too deeply mired in our current morass to come up for air long enough to have civil discourse about these problems?

What is needed here is far more than just another real estate conference with panel discussions and break-out sessions where lots of platitudes are spoken but nothing is accomplished. We need something more akin to a constitutional convention with delegations from each of the constituent “states.”

The assembly would need more than just a couple of days, but certainly less than the nearly four months it took the founding fathers to draft, debate, and adopt the new structure of an entire nation.

But the next step would be the trickier one. How do we ratify such a new structure? In 1787 it was fairly easy, even with 13 independent minded states joining together for the common good. On a simple yes or no vote, each state decided could it go it alone or would it be better off joining with its confederates to become stronger through union and common purpose. This time it’s trickier. One no vote by one vital “state” would/could undermine the entire effort. This truly needs to be all for one and one for all.

In the end, all the states joined. They joined for purposes similar to those which the real estate convention would be asked to address: to form a more perfect industry union, establish justice, insure domestic tranquility, provide for the common defense, promote the general welfare, and secure the benefits of home ownership to ourselves and our posterity.

Is this the impossible dream? Or are we as an industry up to the task? And if so, when can we start the quest?

For this post:
The Cause: an impossible dream?
The Effect: a glorious quest!

About Bob Bemis

• Formerly VP Business Development – Realtors Property Resource (RPR) division of Natl. Assn. of Realtors (NAR) (October 2015 to February 2018) • Formerly VP Partner Relations – Zillow (February 2012 to July 2013) • Named by Inman News as "100 Most Influential Leaders in Real Estate" for 2011 and 2013 • CEO - Arizona Regional MLS, Tempe, AZ (October 2007 to February 2012) • Representative on the NAR’s MLS Issues and Policy Committee; served on Presidential Advisory Group studying IDX use in Social Media • Formerly a Director on the board of the Council of Multiple Listing Services, a national association of MLSs • Formerly Interim president of the MLS Domains Association, an organization seeking to acquire the Dot.MLS top level domain for exclusive use by MLS systems • Vice President of Customer Care for MRIS, in Washington DC/Baltimore (2001-2007)

2 Responses to The Impossible Dream or a Glorious Quest?

The fallacy which underlies both Steve’s and your vision is that organized real estate is somehow still in charge, and can shape the direction of the industry. Make no mistake about it: the associations, the MLSs, and the brokerages are no longer in a power position. The consumer is. And what the consumer wants, the consumer will obtain, like it or not. Look around you for the successful models outside the industry–Google, Amazon, you know the names. Those examples meet consumer demands first and foremost, and the consumer really doesn’t care much whether local merchants fail, bookstore chains collapse, or traditional business models are trampled underfoot.

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